Future multibaggers - Intrasoft Tech & Intellect Design Arena

Looks like potential multi baggers. Your views please

Intrasoft Tech:
https://www.business-standard.com/ar...ting-e-comm-play-in-india-115092800013_1.html

Excellent analysis, refer below link
https://value2wealth.blogspot.in/2015/12/intrasoft-technologies-temptation-to.html

Intellect Design Arena
Intellect Design Arena Ltd, a Polaris Group company, is a global leader in Financial Technology for Banking, Insurance and other Financial Services.

 

I like intellect design but not sure if it will be a multibagger

 

Investors scouting for the next multibagger with an Intention is to get rich fast. Does anybody believe in the power of compounding

 

Intrasoft --- I am not a big fan of business models related to online/internet. Sustenance is a very big challenge in this business model.

Intellect being a product based company has definitely a very large scope than Intrasoft ... Biggest glitch with Intellect is the tainted management (i.e. Arun Jain) ... Take the case of Polaris, it is almost done & dusted ... Polaris rose like crazy & it fell down like crazy ... Arun was arrested in Indonesia w.r.t a banking fraud issue & again couple of years before he was barred by SEBI for insider trading ...

 

Intellect Design has grown leaps and bounds .. FY2016 they have turned positive in NP. Termed as 'India's Microsoft' and Rakesh Jhunjhunwala is having position.
Hope greener pastures are more in the coming years.

 

Nope. It continues to be loss making at a consolidated level.

Stuff like India's Micosoft is just meaningless. They have invested a lot in R&D and in hiring senior sales & marketing staff from competitors. They now need to win deals to turn profitable. There is a lot of operating leverage. However currently there is limited visibility on what projects they might win.

I am invested though.

 

Intellect has given 33% YoY growth !!!
50 New Digital Deals..
4 New products.

Total Revenue : 811 crores in FY16 (33% growth)

Arun Jain, chairman and managing director, has said the company has won several deals and launched new products in the quarter.

"With a health pipeline, I am confident that we will achieve our set annual revenue guidance in the range of Rs 990 crore to Rs 1020 crore for this financial year," he said. The company has posted a revenue of Rs 810.65 crore in FY 2015-16, a 33 per cent growth compared to Rs 608.75 crore registered during the previous fiscal year.

S Swaminathan, chief financial officer, said that the company would have preferred the first quarter to start on a slightly higher note."This quarter is not a representative quarter for performance," he said, adding that the company understand various levers of costs management for a product business and its cost has now stabilized and is predictable.

Now, Why I'm interested in this company?

Building a core banking system or a core risk management system or a core insurance system is an extremely difficult task. If the core banking system stops or does not behave as promised then the bank is in trouble.

Imagine when you open up your personal banking portal and see a balance which is not what you expect. Even a 1Rs difference means the bank will face a tremendous loss of goodwill. This is the simple part. Banking today is so complex with them dealing in Forex, derivatives, investment options , arbitrages with millions of transactions worth billions / trillions of rupees. All of this is dependent on the core banking system.
In addition now we have multiple channels mobile call Centre , web, social media et all with which the core banking or core insurance system needs to be integrated. So choosing a CBS of core insurance system is a tough decision. The evaluation standards are the most stringent of them all.

A wrong decision and the bank can go back 5 years with loss of reputation, legal issues etc.. So once you install a CBS or CIS you are in for a minimum of next 15 to 20 years. The real money is not from license fees but from the maintenance and feature enhancements which keeps added up !!!!!

Every year new legislations come in, new reporting is required new changes happen in technology so it is a perpetual process. So a huge economic moat if you have a really cutting class product. One needs to invest for a couple of years at least before the toll bridge starts.

Intellect has already invested more than 5 years already in building these products. The products business especially in the BFSI space is tough to enter and tough to get out if you are in.

I see atleast 3-5 years down the line if anyone holds this in his portfolio it will do wonders !!!

 

So what is the Core Banking platform Intellect offers? Don't all Foreign Banks have their own Global systems and have not private and public banks already exercised their choice Finacle etc. So who are the target clients? Any visibility on this front?

 

it is not just about "core banking platform" its about the bigger picture... entire world of BFSI industry will undergo a sea change...artificial intelligence...blockchain(this is beyond bitcoin)..rebundling of this institutions is bound to happen...picture this people not going to branches for transacting..everything happens online...
so basically they will be helping Financial Institutions to accelerate their digital transformation through productized technology...if you want more info i would suggest you to read this
https://www.intellectdesign.com/inv...ing -Business -Aware-Banking-and-Payments.pdf

 

Dear @mehul kamdar

If you are from the BFSI or Technology kindly translate this PPT into layman terms and highlight where and how do these name figure in the evolving digital revolution detailed in the presentation. Else its all beyond my limited understanding. I am a man with small intelligence.

For now,
I referred to core systems only because your post devoted a couple of para's to core banking systems and what is said about it - the complicated banking today all depends on the core banking system.

IMO, the following already exist
- every bank already has its own core banking system and getting any of them to move away from their systems is extremely difficult if not impossible. So do these future multibaggers have any core banking system product and how many banks are using their product
- almost everything can be done online and for it to happen online, for a country like India, requires a mindset change. I for one hardly ever visit my bank branch already.
- cutting edge/path breaking/revolutionary technological development : cloud, AI etc : I dont think our Tech companies will ever produce one. American Companies with Indian scientists will do it
- Indian banking anyways already lags the developed world banking and here I am not talking about technology platforms - but banking products. It is both bad and good (gives Indian companies an opportunity for Core Banking systems will need upgrades as RBI and India Banks (as our financial markets evolve) allow and adopt structured products
- the digital age space is a high stake, high cost, high failure area with intense competition. Requires deep pockets and ability to absorb setbacks. No sure if these companies have these.

Also, could you help with - do these companies have
- any first mover advantages with the mentioned companies or any top of the line BFSI product which have the Indian/Global companies lining up to buy
- any areas of expertise wherein they have a leadership position

And finally that banking is changing and will be subject to changes some disruptive - I already stated this in so many words, in one other post of mine a few days ago.

 

Intellect Design Arena :

 

Intellect Design will be at The National Association of Independent Life Brokerage Agencies (NAILBA), Dallas for showcasing the 1st ever InsuranceCRM for Advisors.

 

Intellect Design Arena :: Launched EZEE Mobile Digital Payment ...



What is EZEE ?




Key Unique Differentiators - Digital Payment

 

Intellect Design Arena Ltd has informed BSE that CRISIL, vide its letter dated November 22, 2016, has assigned credit rating of :

a) BBB+/ Stable rating for Long Term Loans, and

b) CRISIL A2 for Short Term Loans.

https://corporates.bseindia.com/xml...64549A_5F88_4B96_8EBE_F4AA591FEA9B_182922.pdf

 

Can you tell me is this stock will have great future, Redington (INDIA), CMP @ 93.6?
Many mutual funds are already invested on it and good ratio structure.

 

All stocks are shooting up today. Super gains are there

 

Rakesh J has invested in Viceroy Hotels. Wonder why. It is not going anywhere for many years. Can anyone explain why?

 

Management efficiency is the main point and any great investor may be some times wrong calculation
and wrong investment ... we are all humans so some may do 1000 mistakes some may do 10 mistakes , no mistake is not possible for any person in this earth sir

 

Many time mistakes are made by big investors. Even Warren Buffett said he made mistakes worth $50 Billion dollars. Overall position has to be seen. Even after mistake how much money is made by investor. That is test of average and good investor IMHO.

 

HDFC Securities Reports on Intellect Design -

https://www.hdfcsec.com/Research/Company-Research-Report.aspx?CoCode=54769